WTI jumps 2% to test $ 53, eyes on EIA data

• Increased odds of US-China trade deal boosts risk appetite as well as oil.
• Libyan supply disruption concerns, OPEC output cuts buoy the prices.
• All eyes on the US EIA crude stockpiles data for fresh direction.

WTI (oil futures on NYMEX) caught a fresh bid wave and broke the consolidative mode to the upside, as the bulls cheer the improved risk sentiment, fuelled by the increased odds of the US-China trade deal that lifted the sentiment around the higher-yielding oil.  

Moreover, expectations that the OPEC oil output cuts would stabilize the oil markets combined with concerns over the Libyan supply disruption continue to buoy the prices. Disruptions to Libyan crude exports was due to the local militia seizure of the country’s biggest oilfield, El Sharara.

Attention now remains towards the US weekly crude stockpiles data published by the Energy and Information Administration (EIA) at 1530 GMT, which will offer a fresh direction to the prices.

WTI Technical Levels